[PAGE 1]
Richfield Housing and Redevelopment Authority
Agenda
February 17, 2026 -- 7:00 PM
Richfield Municipal Center
Council Chambers
6700 Portland Avenue South
1. Call to Order
2. Roll Call
3. Open Forum
a. Participants can share their comments in person, by voicemail, or email, and may also request
to participate virtually. For more information on submitting comments, refer to the Housing and
Redevelopment Authority Agenda and Minutes page on the City's Website.
4. Approval of the Agenda
5. Approval of Minutes
a. Approval of the minutes of the Housing and Redevelopment Authority Work Session of
January 20, 2026; and the Regular Housing and Redevelopment Authority Meeting of January
20, 2026.
6. Presentations
a. 2025 HRA/EDA Year in Review
7. Consent Calendar
Consent Calendar contains several separate items, which are acted upon by the Housing
Redevelopment Authority in one motion. Once the Consent Calendar has been approved, the
individual items and recommended actions have also been approved. No further HRA action on
these items is necessary. However, any HRA Commissioner may request that an item be removed
from the Consent Calendar and placed on the regular agenda for discussion and action. All items
listed on the Consent Calendar are recommended for approval.
8. Consideration of Items, if Any Removed From Consent Calendar
9. Public Hearings
10. Resolutions
a. Consideration of a resolution authorizing the execution of a Developer Agreement with the
West Hennepin Affordable Housing Land Trust, dba Homes Within Reach, for the acquisition,
rehabilitation and sale of houses under the New Home Program.
11. Other Business
a. Consideration of a resolution authorizing the Executive Director to execute a Contract for
Demolition with Harkness Excavating for the demolition of 6804 14th Avenue South.
12. Executive Director’s Report
13. HRA Discussion Items
14. Approval of Claims
15. Adjournment
Auxiliary aids for individuals with accessibility needs are available upon request. Requests must be made at least 96 hours in
advance to the City Clerk at 612-861-9739.
Includes Materials - Materials relating to these agenda items can be found in the HRA agenda packet located by the entrance. The
complete HRA agenda packet is available electronically on the City of Richfield’s website.
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[PAGE 2]
HRA Work Session Minutes January 20, 2026
HOUSING AND REDEVLOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Work Session Meeting
January 20, 2026
ITEM #1 CALL TO ORDER
The meeting was called to order by Mayor/HRA Commissioner Supple at 6:00 p.m. on January 20,
2026, in the Babcock Conference Room.
HRA Present: Gordon Hanson, Acting HRA Chair; Sean Hayford Oleary; Mary
Supple.
Absent:
John Young; Erin Vrieze Daniels, HRA Chair.
ITEM #2 HRA/EDA CANDIDATE INTERVIEWS
HRA Commissioners interviewed the following candidates to fill the upcoming vacancy on the HRA
and EDA.
Jake Pederson Dale Darrow
Brett Stursa James O’Connor
Tim Reilly
ITEM #3 ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:55 p.m.
Date Approved: February 17, 2026
Gordon Hanson
Acting Chair
Mark McKinley Melissa Poehlman
Administrative Assistant Executive Director
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[PAGE 3]
HRA Meeting Minutes January 20, 2026
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 20, 2026
1. CALL TO ORDER
Acting Chair Hanson called the meeting to order at 7:00 p.m. in the Council Chambers.
2. ROLL CALL
HRA Present: Gordon Hanson, Acting Chair; Sean Hayford Oleary; Mary Supple.
HRA Excused: Erin Vrieze Daniels, Chair; John Young.
Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant Community
Development Director; and Michelle Friedrich, City Clerk.
3. OPEN FORUM
Acting Chair Hanson gave instructions on how to participate in the open forum. No residents
participated.
4. APPROVAL OF THE AGENDA
MOTION: made by Hayford Oleary, seconded by Supple to approve the agenda as presented.
Motion carried: 3-0
5. APPROVAL OF THE MINUTES
MOTION: made by Supple, seconded by Hayford Oleary to approve the minutes of the Housing and
Redevelopment Authority meeting Minutes of November 17, 2025, as presented.
Motion carried: 3-0
6. PRESENTATION
None.
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[PAGE 4]
HRA Meeting Minutes January 20, 2026
7. CONSENT CALENDAR
Executive Director Poehlman presented the consent calendar.
a. Consider approval of a temporary permit allowing the Minnesota Department of Transportation
to access properties owned by the Housing and Redevelopment Authority at 1600 and 1620
78th Street East to rebuild a sidewalk during the I-494 Project 2 construction.
MOTION: made by Hayford Oleary, seconded by Supple, to approve the consent calendar as
presented.
Motion carried: 3-0
8. CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR
None.
9. PUBLIC HEARINGS
None.
10. RESOLUTION(S)
None.
11. OTHER BUSINESS
a. Consideration of a Professional Services Agreement with VEAP to provide funding for
emergency rental assistance and the related navigation and servicing of the program, using
$50,000 in Local Affordable Housing Aid.
Assistant Community Development Director Urban presented the item and noted during the COVID-
19 pandemic, VEAP provided emergency rental assistance in partnership with the HRA and later
through county and state funding. Assistant Community Development Director Urban reviewed the
pandemic-era resources are ending, and funding is expected to decline significantly in 2026. She
added VEAP was not selected as a county service provider, raising concerns about reduced access
and effectiveness for Richfield residents.
Assistant Community Development Director Urban explained VEAP has requested community
support to help fill the funding gap. Staff recommend allocating $50,000 in Local Affordable Housing
Aid (LAHA) to VEAP to provide up to three months of rental assistance for households earning up to
50% of AMI, with 15% of the funds used for navigation and service-related support, as allowed by
statute. She noted VEAP estimates the funding could assist 10–30 households, and demand is
expected to increase in the near term.
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[PAGE 5]
HRA Meeting Minutes January 20, 2026
HRA and staff discussion clarified that the proposed rental assistance is not age-restricted and is
open to all eligible households, including seniors. Staff confirmed that approving this action does not
limit the City’s ability to provide additional funding in the future, noting that over $250,000 in
uncommitted LAHA funds remain available. Staff noted the initial funding level was intended as a
starting point, with reassessment anticipated as needs evolve. Staff also explained that LAHA funds
may be used to expand housing assistance efforts but may not supplant existing funding. Assistant
Community Development Director Urban noted, in this case, the proposed rental assistance qualifies
as a new use of funds and is eligible under LAHA requirements.
MOTION: made by Supple, seconded by Hayford Oleary to approve a Professional Services
Agreement with VEAP to provide funding for emergency rental assistance and the related navigation
and servicing of the program, using $50,000 in Local Affordable Housing Aid.
Motion carried: 3-0
12. EXECUTIVE DIRECTOR REPORT
Executive Director Poehlman noted no report at this time.
13. HRA DISCUSSION ITEMS
HRA raised concerns about small businesses experiencing reduced hours or temporary closures due
to worker and customer safety concerns related to increased immigration enforcement. Staff
acknowledged these impacts, noting approximately 10 temporary business closures and additional
hourly reductions. Staff reported ongoing efforts to assess economic impacts, including outreach to
affected businesses, coordination with peer communities, and consultation with legal counsel
regarding potential assistance options. Staff noted while direct business assistance is complex, the
rental assistance through VEAP may provide indirect support to impacted business owners and
employees. Staff will continue evaluating options and gathering information.
14. APPROVAL OF CLAIMS
MOTION: made by Hayford Oleary, seconded by Supple, to approve claims:
U.S. BANK 12/15/2025
HRA Checks# 37310-37325 $97,558.89
Section 8 Checks# 137314-137396 $225,737.18
TOTAL: $323,296.07
U.S. BANK 1/20/2026
HRA Checks #37330-37352 $287,310.97
Section 8 Checks# 137397-137477 $227,702.31
TOTAL: $515,013.28
Motion carried: 3-0
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[PAGE 6]
HRA Meeting Minutes January 20, 2026
15. ADJOURNMENT
This meeting was adjourned by unanimous consent at 7:14 p.m.
Date Approved: February 17, 2026
Gordon Hanson
HRA Acting Chair
Michelle Friedrich Melissa Poehlman
City Clerk Executive Director
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[PAGE 7]
Housing and Redevelopment Authority Meeting 2/17/2026
Agenda Section: Resolutions
Agenda Item: 10.a.
Report Prepared By:
Celeste McDermott, Housing Specialist
Hilary Lovelace, Housing Specialist
Department Director:
Melissa Poehlman, Community Development Director
Item for Consideration:
Consideration of a resolution authorizing the execution of a Developer Agreement with
the West Hennepin Affordable Housing Land Trust, dba Homes Within Reach, for the
acquisition, rehabilitation and sale of houses under the New Home Program.
EXECUTIVE SUMMARY
The Housing and Redevelopment Authority's (HRA) New Home Program (Program)
provides affordable homeownership opportunities in the community through new
construction, acquisition and rehabilitation, and down payment assistance. As part of
the Program, the HRA works with the West Hennepin Affordable Housing Land Trust
(WHAHLT), dba Homes Within Reach, to purchase and rehabilitate homes to be sold to
income-qualifying households. WHAHLT is a Community Land Trust that allows
moderate-income buyers to achieve affordable homeownership by holding ownership of
the land in perpetuity, and thereby reducing the overall amount to be financed and the
down payment required. The model ensures ongoing affordability throughout the
lifetime of the property and with multiple owners. WHAHLT is seeking to continue
providing affordable housing in Richfield through this model.
The proposed Developer Agreement (Agreement) between the HRA and WHAHLT
details the terms of this continued partnership through 2026. Under the terms of the
Agreement, the HRA has $240,000 available for WHAHLT's purchase and rehabilitation
of at least three single-family homes. WHAHLT would then resell the homes to
households earning no more than 80% of the Area Median Income (AMI).
RECOMMENDED ACTION
By motion: Approve a resolution authorizing the execution of a Developer Agreement
with the West Hennepin Affordable Housing Land Trust, dba Homes Within Reach, for
the acquisition, rehabilitation and sale of at least three houses under the New Home
Program.
HISTORICAL CONTEXT
• Under the Program, the HRA has worked with several developers over the years
to either build new homes or purchase and rehabilitate existing homes.
• These homes are then sold to households earning no more than 80% of the
AMI.
• Since 2002, WHAHLT has successfully purchased, rehabilitated and sold 15
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[PAGE 8]
homes and constructed 3 new homes in Richfield.
• Funding for the work of the Program has varied by year, with most recent
projects funded with local Community Development Block Grant funds and the
Affordable Housing Trust Fund, as well as pooled Tax Increment Financing.
EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The Program furthers equity goals by providing a path to affordable homeownership for
low-income households. The Program supports the 2023-2027 Strategic Plan outcome
of maintaining Richfield as an affordable place to live.
POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.)
• The objectives of the Program are to:
o Eliminate the blighting influence of substandard housing, thus improving
residential neighborhoods;
o maintain and improve the existing housing stock while preserving housing
affordability;
o develop quality housing with long-term affordability, to the greatest extent
possible, and
o coordinate with developers to provide affordable housing for families.
• Purchasing and rehabilitating homes to provide affordable housing carries out the
policies of the City’s Comprehensive Plan, including: support the rehabilitation
and upgrading of the existing housing stock; promote the development,
management and maintenance of affordable housing in the City through
assistance programs, alternative funding sources.
CRITICAL TIMING ISSUES
• The Agreement must be approved before WHAHLT can purchase a property in
Richfield and request reimbursement.
• The Agreement provides for HRA staff to approve the acquisition of the specific
property and to review income documentation prior to the final sale.
FINANCIAL IMPACT
• The Agreement provides $240,000 for acquisition and rehabilitation through the
Program for WHAHLT to purchase and rehab at least three homes (with a plan to
allocate an average of $60,000 per property).
• Funding for this work is available from the Affordable Housing Trust Fund, a
grant from the State's Trust Fund Matching Grant Program, and Community
Development Block Grand funding.
LEGAL CONSIDERATIONS
The Agreement was prepared by HRA legal counsel.
ALTERNATIVE RECOMMENDATION(S)
Do not approve a resolution authorizing execution of a Developer Agreement with the
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[PAGE 9]
West Hennepin Affordable Housing Land Trust, dba Homes Within Reach.
ATTACHMENTS
1. 021726 WHAHLT_Resolution_Approving_Developer_Agrmt
2. 021726 WHAHLT_Developer_Agreement_2026
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[PAGE 10]
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING DEVELOPER AGREEMENT WITH WEST HENNEPIN
AFFORDABLE HOUSING LAND TRUST DBA HOMES WITHIN REACH
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) intends to provide $240,000 from Community Development Block grant
funding (“CDBG funds”) and/or Affordable Housing Trust Fund ("AHTF funds") to the West
Hennepin Affordable Housing Land Trust dba Homes Within Reach, a Minnesota nonprofit
corporation (“WHAHLT”), for the purposes of acquiring and rehabilitating homes in the City of
Richfield, Minnesota; and
WHEREAS, the Authority has proposed that WHAHLT use the CDBG and/or AHTF funds
to purchase, rehabilitate, and resell one or more properties to households earning at or below 80%
of the area median income; and
WHEREAS, there has been presented before the Board of Commissioners of the Authority
a Developer Agreement (the “Developer Agreement”) to be executed by the Authority and
WHAHLT, which sets for the terms of the CDBG and/or AHTF funds to be provided to WHAHLT
and the agreement by WHAHLT to purchase, rehabilitate, and resell the properties; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The Developer Agreement is hereby in all respects authorized, approved, and
confirmed, and the Chair and the Executive Director are hereby authorized and directed to execute
the Developer Agreement for and on behalf of the Authority in substantially the form now on file
with the Executive Director but with such modifications as shall be deemed necessary, desirable,
or appropriate, the execution thereof to constitute conclusive evidence of their approval of any and
all modifications therein.
2. This resolution shall be in full force and effect as of the date hereof.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 17th day of February, 2026.
________________________________
Erin Vrieze Daniels, Chair
________________________________
Sean Hayford Oleary, Secretary
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[PAGE 11]
DEVELOPER AGREEMENT
(West Hennepin Affordable Housing Land Trust dba Homes Within Reach)
THIS DEVELOPER AGREEMENT (the “Agreement”), made and entered into as of
this 17th of February, 2026 (“Effective Date”), by and between the Housing and Redevelopment
Authority in and for the City of Richfield (“Authority” or “HRA”), a body corporate and politic
under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue,
Richfield, Minnesota (“HRA”) and the West Hennepin Affordable Housing Land Trust (dba
Homes Within Reach), a nonprofit corporation under the laws of Minnesota, having its principal
office at 5100 Thimsen Ave, Suite 120, Minnetonka, MN 55345. (“Developer” or “WHAHLT”).
RECITALS
A. The HRA intends to provide WHAHLT with up to $240,000 in Community
Development Block Grant funds (“CDBG Funds”) or Affordable Housing Trust Fund
funds (“AHTF Funds”) for the purposes of acquiring and rehabilitating up to three homes
in the City of Richfield (the “City”) to be resold to people earning at or below 80% of the
area median income.
B. The HRA desires WHAHLT to purchase, rehabilitate, and resell at least three
properties eligible to be purchased, rehabilitated and resold with CDBG Funds or AHTF
Funds (the “Eligible Properties”) and WHAHLT has agreed to do so pursuant to the terms
and conditions of this Agreement.
C. The City and the HRA have previously established a New Home Program pursuant
to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047.
D. WHAHLT will utilize the Community Land Trust model to purchase, rehabilitate,
and resell the property(ies) to an income-qualified buyer(s), and will retain ownership of
the land to ensure long-term affordability.
E. The grant of the CDBG Funds or AHTF Funds to WHAHLT is for the purpose of
providing affordable housing within the City and to assist in carrying out the objectives of
the New Home Program, which are in the best interests of the City, and the health, safety
and welfare of its residents and in accord with the public purposes and provisions of the
applicable state and local laws and requirements.
F. In performing its obligations under this Agreement, WHAHLT must adhere to the
restrictions for the use of CDBG Funds or AHTF Funds set forth in this Agreement.
AGREEMENT
1. Scope of Work.
A. Developer. The HRA hereby designates WHAHLT as a Developer to purchase,
rehabilitate, and resell Eligible Properties in accordance with the terms and conditions of this
Agreement.
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[PAGE 12]
B. Memorandum of Understanding. WHAHLT shall purchase, rehabilitate and resell
Eligible Properties based on the Memorandum of Understanding of the parties set forth in
EXHIBIT A.
C. Criteria. WHAHLT will identify Eligible Properties that WHAHLT would like to
acquire under this Agreement. Prior to the acquisition of an Eligible Property, WHAHLT shall
provide the HRA with a Developer Pro Forma in the form set forth in EXHIBIT B.
D. Compliance with Required Programs. To the extent required by federal, state, and
local law and regulation, WHAHLT agrees to comply with the program requirements of:
(i) Equal opportunity and discrimination provisions of all applicable State and Federal
laws, rules, and regulations;
(ii) Section 504 of the Rehabilitation Act of 1973, as amended;
(iii) Fair housing requirements of section 104(b) and section 109 of Title I of the
Housing and Community Development Act of 1974, as amended, including Title VI of the Civil
Rights Act of 1964, the Fair Housing Act, and other applicable fair housing laws;
(iv) All Lead Laws and Rules, including Minn. Stat. Sections 144.9501 through
144.9512, Minnesota Rules 4761.2000 through 4761.2700, and Federal Regulations including
Residential Lead-Based Paint Disclosure Program (Section 1018 of Title X) and the Renovation,
Repair, and Painting Rule (TSCA 406(B)).
(v) The Hennepin County Affirmative Action Policy.
WHAHLT further agrees to provide HRA with a timely certification that the requirements listed
in this Section have been met.
E. Resale of Property. After WHAHLT completes the rehabilitation of an Eligible
Property, WHAHLT will market said Eligible Property and execute a purchase agreement with an
end buyer earning at or below 80% of the area median income.
F. Reports. WHAHLT shall provide HRA with a report of its activities on an as-
needed basis, including but not limited to reports related to the income of the end buyer of each
Eligible Property.
2. Term. This Agreement is effective as of the Effective Date and until December 31, 2026.
3. Acquisition, Relocation and Displacement. WHAHLT shall be responsible for carrying
out all acquisitions of real property necessary for implementation of this Agreement. WHAHLT
shall conduct all such acquisitions in its name and shall hold title to all real property purchased
and shall be responsible for preparation of all notices, appraisals, and documentation required in
conducting acquisition under the regulations of the Uniform Relocation Assistance and Real
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[PAGE 13]
Property Acquisition Act of 1970, as required under 49 CFR Part 24. WHAHLT shall also be
responsible for providing all relocation notices, counseling, and services required by said
regulations. In addition, WHAHLT shall comply with the acquisition and relocation requirements
of the Minn. Stat. Sections 117.50 through 117.56 (the “Minnesota Relocation Act”).
4. Labor Standards, Employment and Contracting. WHAHLT shall notify the HRA prior to
initiating any rehabilitation activities, including advertising for contractual services, which will
include costs likely to be subject to the provisions of Federal Labor Standards and Equal
Employment Opportunity and related implementing regulations.
5. Documentation. WHAHLT must maintain the following records and reports relating to
Eligible Properties acquired pursuant to this Agreement: income documentation for buyer of
property financed with CDBG Funds or AHTF Funds, appraisals, environmental reports, purchase
agreements, settlement statements, and deed document number/filing information per property.
WHAHLT shall submit copies of the foregoing documentation to HRA with respect to any Eligible
Property acquired pursuant to this Agreement prior to closing with the buyer. The HRA will issue
a clear to close once documentation has been submitted.
6. Suspension and Termination. If WHAHLT materially fails to comply withany term of this
Agreementafter written notice and an opportunity to cure, this Agreement may be terminated. The
time period for said opportunity to cure will be dependent upon the relevant time period
requirements of the applicable law, regulation, program, or otherwise.
7. Notice. All communications, notices, and demands of any kind which either party may be
required or may desire to give to or serve upon the other shall be made in writing, and such notice
shall be deemed sufficiently given if and when it is addressed to then other party as provided below
and either (a) delivered personally, (b) deposited in the United States mail, registered or certified,
with postage prepaid, (c) deposited with an overnight delivery service for next day delivery, or (d)
telecopied:
To HRA: Richfield Housing and Redevelopment Authority
Attention: Melissa Poehlman, Executive Director
6700 Portland Avenue
Richfield, Minnesota 55423-2599
Fax: (612) 861-8974
To WHAHLT: West Hennepin Affordable Housing Land Trust
Attention: Brenda Lano, Executive Director
5100 Thimsen Avenue
Suite 120
Minnetonka, MN 55345-4117
8. Data Practices. WHAHLT agrees to abide by the provisions of the Minnesota Government
Data Practices Act and all other applicable State and Federal laws, rules, and regulations relating
to data privacy and confidentiality, and as any of the same may be amended.
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[PAGE 14]
9. Access to Records. HRA shall have the authority to review any and all procedures and all
materials, notices, and documents prepared by WHAHLT in implementation of this Agreement.
10. Indemnification. WHAHLT agrees to hold harmless, indemnify and defend HRA, its
elected officials, officers, agents, and employees against any and all claims, losses, or damages,
including attorneys’ fees, arising from, allegedly arising from, or related to, the provision of
services under this Agreement by WHAHLT, its employees, agents, officers, or volunteer workers.
11. Independent Contractor. Nothing in this Agreement is intended, nor may be construed, to
create the relationship of partners or employer/employee between the parties. WHAHLT, its
officers, agents, employees, and volunteers are, and will remain for all purposes and services under
this Agreement, independent contractors.
12. Entire Agreement. The entire agreement of the parties is contained in this document. This
Agreement supersedes all previous written and oral agreements and negotiations between the
parties relating to the subject matter of this Agreement except as provided in paragraph 17 of this
Agreement.
13. Severability. The invalidity, illegality or enforceability of any provision ofthis Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, all of which
shall remain in full force and effect.
14. Assignment of Agreement. The parties shall not assign this Agreement without the express
written consent of the other party.
15. Modification. No provision, term or clause of this Agreement shall be revised, modified,
amended or waived except by an instrument in writing signed by both parties.
16. Counterparts. This Agreement may be executed in any number of counterparts and each
such counterpart shall be deemed to be an original, all of which, when taken together, shall
constitute one agreement.
17. Headings. The titles to the sections and headings of various paragraphs of this Agreement
are placed for convenience of reference only and in case of conflict, the text of this Agreement,
rather than such titles or headings shall control.
18. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the successors and assigns of each of the parties hereto.
19. Invalidity. If for any reason any portion or paragraph of this Agreement shall be declared
void and unenforceable by any court of law or equity, it shall only affect such particular portion or
paragraph of this Agreement, and the balance of this Agreement shall remain in full force and
effect and shall be binding upon the parties hereto.
20. Governing Law. This Agreement shall be governed and construed in accordance with the
laws of the State of Minnesota.
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[PAGE 15]
21. Electronic Signatures. This Agreement may be executed with electronic signatures.
(Signature page follows)
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[PAGE 16]
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name and behalf and WHAHLT has caused this Agreement to be duly executed in its name
and behalf as of the date first above written.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
By ________________________________
Its Chairperson
By ________________________________
Its Executive Director
WEST HENNEPIN AFFORDABLE HOUSING LAND
TRUST
By ________________________________
Its Executive Director
S-1
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[PAGE 17]
EXHIBIT A
PROCEDURES
Memorandum of Understanding
Properties, In General:
 WHAHLT will identify, purchase, and rehabilitate at least three Eligible Properties for
subsequent resale to households earning at or below 80% of the Area Median Income.
 The HRA agrees to cover up to $80,000 of the Development Gap for Eligible Properties.
Development Gap means the estimated total development costs less the sales price of the
improved property up to a maximum gap amount as shown on “Exhibit B” or other developer
pro forma approved by the HRA.
Identification of Eligible Property:
 WHAHLT will identify Eligible Properties.
 WHAHLT will provide the HRA with the identity of the Eligible Property so that the HRA
may decide whether the HRA will use CDBG or AHTF funds to acquire said Eligible Property.
Purchase of Eligible Property:
 WHAHLT will identify one or more Eligible Properties and only purchase an Eligible Property
after receipt of the HRA’s express written consent.
 HRA may express its written consent via email to WHAHLT at blano@homeswithinreach.org.
 WHAHLT shall be responsible for the timely completion of all CDBG or AHTF required
documentation.
Rehabilitation of Eligible Property:
 After WHAHLT has purchased an Eligible Property, WHAHLT will submit a rehabilitation
plan to the HRA and the HRA will agree in writing to the plan, prior to WHAHLT beginning
its rehabilitation efforts at that Eligible Property.
Subsequent Resale of Certain Eligible Property to End Buyer:
 After WHAHLT completes the rehabilitation of an Eligible Property, WHAHLT will market
said Eligible Property and execute a purchase agreement with an end buyer whose household
income is at or below 80% of Area Median Income.
 WHAHLT will maintain long-term affordability by retaining ownership of the land through
its land trust.
Reimbursement of Acquisition/Rehabilitation Costs (or Payment of the Development Gap):
• WHAHLT will use its own funds to purchase an eligible property.
• Following the acquisition of the property, WHAHLT may request that the HRA provide
payment up to 60% of the total requested amount towards the estimated Development Gap.
• The remaining 40% of the total requested amount will be paid upon sale of the Eligible
Property and submittal of all required documentation to the HRA.
• The maximum amount of reimbursement available under this Agreement is $80,000 per
Eligible Property up to a total of $240,000.
A-1
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[PAGE 18]
EXHIBIT B
DEVELOPER PRO FORMA
Sources & Uses - Preliminary
Name of Property:
Date:
Comments
Sources:
Homebuyer Mortgage $
20__ AHIF $ Project Costs
20__ Richfield Tax Increment $ Land & Project Costs
20__ HOME $ Land
20__ MH Impact $ Project Costs
20__ Bond Proceeds $ Land
20__ Met Council $ Rehab
Total $
Uses:
Acquisition Costs $
Closing Costs $
Inspection/other $
Acquisition
costs $
Project Fee & HOME
Adm Fee $ Fee
Holding/Closing Costs/ Special Assessments
LC/ Taxes $ of $_______
Rehab Costs $
Total $
B-1
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[PAGE 19]
Housing and Redevelopment Authority Meeting 2/17/2026
Agenda Section: Other Business
Agenda Item: 11.a.
Report Prepared By:
Celeste McDermott, Housing Specialist
Hilary Lovelace, Housing Specialist
Department Director:
Melissa Poehlman, Community Development Director
Item for Consideration:
Consideration of a resolution authorizing the Executive Director to execute a Contract
for Demolition with Harkness Excavating for the demolition of 6804 14th Avenue South.
EXECUTIVE SUMMARY
In September 2025, the Housing and Redevelopment Authority (HRA) acquired the
substandard property at 6804 14th Avenue with the intent of preparing the site for future
redevelopment through the Richfield Rediscovered Program. The property has since
been cleared of debris and abated for hazardous materials. In recent years, the HRA
has required the buyer of the lot to remove the structures from a property. However,
given the poor condition of this particular property, staff recommends that the HRA
undertake demolition of all structures.
A priority of the Richfield Rediscovered Program is to incorporate deconstruction into
the demolition process when feasible. Deconstruction involves the careful removal of
salvageable building materials for recycling or reuse, thereby reducing the amount of
material sent to landfills. However, the cost to deconstruct and demolish has greatly
increased since the last time the HRA utilized deconstruction services. The cost
estimate to deconstruct and demolish the structures on this property is $59,530. A grant
from Hennepin County would reduce the total cost to $41,530; however, the bid for
demolition alone is significantly less at $22,304.
Given the substantial difference in cost between deconstruction before demolition and
demolition alone, staff is recommending the HRA approve and execute a Contract with
Harkness Excavating for full demolition of all structures.
RECOMMENDED ACTION
By motion: Approve a resolution authorizing the Executive Director to execute a
Contract with Harkess Excavating for full demolition of all structures at 6804 14th
Avenue South.
HISTORICAL CONTEXT
• 6804 14th Avenue South was identified as substandard through an inspection of
the home which identified a variety of code, environmental health, and structural
deficiencies.
• Constructed in 1950, the one-and-a-half-story home has 825 finished square
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[PAGE 20]
feet. It has a floating slab with no basement, two bedrooms, and one bathroom.
The property has two garages and a shed.
• The HRA purchased the property in September 2025 for $150,000.
• The property was abated of hazardous materials and cleared of a significant
amount of debris.
• Two bids for the demolition were received. The second bid from Bollig and Sons
was significantly higher at $33,838.
EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The Strategic Plan prioritizes Climate Resilience, and deconstruction supports Climate
Resilience; however, given the significant cost, deconstruction is not feasible in this
instance.
POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.)
Program Guidelines for Richfield Rediscovered require deconstruction of structures
unless it is deemed not feasible.
CRITICAL TIMING ISSUES
• Site preparation needs to be completed in order to begin marketing the property
to builders and potential buyers for the construction of a new single-family home
or duplex.
• The existing home is vacant, in bad condition, and poorly secured, so demolition
should occur soon.
• The Contract requires all demolition to be completed no later than May 31, 2026.
FINANCIAL IMPACT
• The 2026 Budget estimates just $15,000 for demolition expenses. Sufficient
funding is available in the Housing and Redevelopment Fund to cover the
$22,304 in costs, and the increased amount will be reflected in the 2026 Revised
Budget.
• Deconstruction would cost an additional $19,226.
Deconstruction Demolition Only
& Demolition
Deconstruction cost $39,100
Hennepin County ($18,000)
Grant
Demolition Cost $20,430 $22,304
Total due from HRA: $41,530 $22,304
LEGAL CONSIDERATIONS
The Contract was prepared by the HRA Attorney.
ALTERNATIVE RECOMMENDATION(S)
1. Approve a resolution authorizing the Exeutive Director to execute a Contract with
Better Futures for the Deconstruction and a Contract with Harkess Excavating for
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[PAGE 21]
the demolition of the remaining structure.
2. Decline to deconstruct or demolish current structures and require that future
buyers do it instead.
ATTACHMENTS
1. 021726 Resolution Demolition 6804 14th Ave S
2. 02172026 - Demo Contract 6804 14th
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[PAGE 22]
HRA RESOLUTION NO. ________
RESOLUTION AUTHORIZING DEMOLITION OF REAL PROPERTY
LOCATED AT 6804 14TH AVENUE SOUTH
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to prepare certain real property for development
pursuant to and in furtherance of the Richfield Rediscovered Program adopted by the
HRA, said real property being described as:
Address: 6804 14th Avenue South
Legal: The East half of the South Sixty-six (66) feet of the North One Hundred
Twenty-six (126) feet of Block Six (6), Rich Fields, Hennepin County, Minnesota
WHEREAS, the existing home and structures are vacant, in bad condition, and
poorly secured; and
WHEREAS, HRA funds are available in the Housing and Redevelopment Fund for
demolition purposes; and
WHEREAS, the cost of deconstruction before demolition is nearly two times more
than the cost of demolishing structures from the property thereby making deconstruction
infeasible; and
WHEREAS, two bids for demolition were received and Harkness Excavating
submitted the low bid of $22,304, and
NOW THEREFORE, BE IT RESOLVED, the Housing and Redevelopment Authority
in and for the City of Richfield authorizes the Executive Director and Chairperson to
execute a Contract for Demolition with Harkness Excavating for the demolition of
structures at 6804 14th Avenue South in an amount not to exceed $22,304.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota on this 17th day of February, 2026.
_______________________
Erin Vrieze Daniels, Chair
ATTEST:
_______________________
Sean Hayford Oleary, Secretary
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[PAGE 23]
CONTRACT FOR DEMOLITION
THIS CONTRACT is made and entered into this ____day of ________, 2026, by and
between TMS Companies, Inc. (the “Contractor”) and the Housing and Redevelopment
Authority in and for the City of Richfield, State of Minnesota (the “HRA”) (collectively, the
“Parties”), for the demolition of buildings located at 6804 14th Ave, Richfield, MN 55423 (the
“Property”).
RECITALS
WHEREAS, the HRA requires the demolition of buildings on the Property (the “Work”).
WHEREAS, the HRA has awarded the Work to the Contractor;
WHEREAS, the Contractor represents that it has the necessary personnel, experience,
competence, and legal right to perform the Work;
NOW, THEREFORE, in consideration of the mutual obligations of the Parties hereto,
each of them does hereby covenant and agree as follows:
Section 1. Definitions
“City” means the City of Richfield, Minnesota.
“Contract” or “Agreement” means this agreement between the HRA and Contractor for the
performance of the Work, together with all exhibits, amendments, or modifications to the
Contract.
“Final Completion” means all items of the Work, “punch list items” and site work are completed
and Contractor is eligible for Final Payment.
“HRA” means the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota.
“Property” means 6804 14th Ave, Richfield, MN 55423.
“Substantial Completion” means the time at which the HRA determines that the Work has
progressed to a point where it is sufficiently complete, leaving only minor “punch list” and close
out items and other minor site work required to be completed for full payment of the contract
price.
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[PAGE 24]
“Work” means the entire completed demolition and all other activities to be performed by
Contractor on the Property as provided for in this Contract.
Section 2. General Requirements
2.1. Rights of the HRA. The HRA and the City reserve the right to reject any or all
proposals or parts of proposals, to accept part or all of proposals on the basis of
considerations other than lowest cost, and to create a project of lesser or greater expense
and reimbursement than described in this Contract. The HRA also reserves the right to
cancel the Contract without penalty, if circumstances arise which prevent the HRA from
completing the project. In the event of any conflict between the General Conditions and
this Contract, this Contract shall control.
2.2. Interest of Members of City or HRA. The Contractor agrees that no member of
the governing body, officer, employee, or agent of the City or the HRA shall have any
interest, financial or otherwise, direct or indirect, in the Contract.
2.3. Equal Opportunity Statement. Contractor agrees to comply with the provisions of
all applicable federal, state, and City statutes, ordinances, and regulations pertaining to
civil rights and nondiscrimination including without limitation Minnesota Statutes,
Section 181.59 as amended, incorporated herein by reference.
2.4. Transfer of Interest. The Contractor shall not assign any interest in the Contract,
and shall not transfer any interest in the same either by assignment or novation, without
the prior written approval of the HRA, provided, however, that claims for money due or
to income due to the Contractor may be assigned to a bank, trust company, or other
financial institution, or to a Trustee in Bankruptcy without such approval. Notice of any
such assignment or transfer shall be furnished to the HRA. Notwithstanding the
foregoing, Contractor shall be entitled to use subcontractors to perform the Work.
2.5. Independent Contractor. It is expressly understood that the Contractor is an
“independent contractor” and not an employee of the City or the HRA. The Contractor
shall have control over the manner in which the services are performed under this
Agreement. The Contractor shall supply, at its own expense, all materials, supplies,
equipment and tools required to accomplish the work contemplated by this Agreement.
The Contractor shall not be entitled to any benefits from the City or the HRA, including,
without limitation, insurance benefits, sick and vacation leave, workers’ compensation
benefits, unemployment compensation, disability, severance pay, or retirement benefits.
2.6. Accounting Standards. The Contractor agrees to maintain the necessary source
documentation and enforce sufficient internal controls as dictated by normally accepted
accounting practices to properly account for expenses incurred under this contract.
2.7. Retention of Records. The Contractor shall retain all records pertinent to
expenditures incurred under this Contract for a period of three years after the resolution
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of all audit findings. Records for non-expendable property acquired with funds under this
contract shall be retained for three years after final disposition of such property.
2.8. Government Data. The Contractor agrees to comply with the Minnesota
Government Data Practices Act, Minnesota Statutes, Chapter 13, and all other applicable
state and federal laws relating to data privacy or confidentiality, as those laws may be
amended. The Contractor shall immediately report to the HRA any requests from third
parties for information relating to this agreement. All data created, collected, received,
stored, used, maintained, or disseminated by the Contractor in performing its obligations
is subject to the requirements of the Act, and the Contractor must comply with those
requirements as if it were a government entity. The HRA agrees to promptly respond to
inquiries from the Contractor concerning data requests. The Contractor agrees to hold the
City and the HRA, its officers, department heads and employees harmless from any
claims resulting from the Contractor’s failure to disclose data maintained by the
Contractor and authorized for release by the HRA, and from Contractor’s unlawful
disclosure or use of data protected under state and federal laws.
Section 3. Contract Price
3.1. Upon compliance with all the requirements of this Contract, Contractor shall be
paid the Contract Price of $22,304.00, pursuant to Section 28 of this Contract.
Section 4. Project Schedule
4.1. Contractor shall commence the Work on or after Contract execution and
Substantial Completion of the Work shall be achieved no later than May 31, 2026, or (5)
days thereafter. If the Work is not substantially completed by May 5, 2026, damages of
$100.00 will be deducted from the Contract Price for each day the requirements of this
contract have not been fulfilled.
Section 5. Local Permit Requirements and Related Submittals
5.1. Contractor shall obtain permits required by the City, including a plumbing permit
(for water & sanitary sewer disconnects) and a demolition permit. Questions about these
permits, permit fees, and the scheduling process for the required inspections should be
directed to the Building Inspections Department at Richfield City Hall (612-861-9860).
5.2. No less than 2 days prior to beginning the Work, the Contractor shall provide:
­ Description of proposed dust and noise control measures for the Property.
5.3. Upon completion of the Work, Contractor shall provide:
­ Copies of any permits required by government agencies other than the City,
such as transport or disposal permits.
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­ Copies of any test results required by government agencies other than the
City, including but not limited to testing required as part of the asbestos
abatement process.
­ Copies of all landfill records indicating receipt and acceptance of hazardous
wastes by a landfill licensed to accept hazardous wastes.
Section 6. Job Conditions - General
6.1. Contractor will disconnect and abandon utilities serving the Property, including
water, sanitary sewer, electricity, gas and telecommunications; or arrange for
disconnection and abandonment of same. Contractor shall not begin Work before field-
verifying that disconnection and abandonment has been completed.
6.2. HRA shall ensure that the buildings are vacated and use of the property is
discontinued prior to start of Work.
6.3. HRA assumes no responsibility for actual condition of structures to be
demolished. Conditions existing at time of inspection for bidding purposes will be
maintained by HRA to the extent practicable. Contractor may salvage any and all
materials and equipment from the Property. Variations within structures may occur due
to removal and salvage operations prior to the start of demolition Work.
6.4. Contractor shall provide all labor, materials, equipment, employee training,
compliance with all regulations, permits, notifications, licenses and agreement necessary
to perform the Work described in this Contract.
6.5 Contractor operations shall not at any time encroach on adjacent residential
properties. Where residents occupy the adjacent properties, the Contractor shall stake
and mark the boundaries of the property to identify the limits of operations for its
employees and subcontractors.
6.6 Where adjacent buildings are occupied, the HRA requires Contractors to advise
the inhabitants as to when they will start Work activities and of what hazards are
involved. Each Contractor shall also furnish the occupants of the adjoining properties a
phone number where they can reach the Contractor in case of an emergency or problem.
6.7 As directed by the City Inspector, a silt fence or other appropriate erosion control
measures shall be erected around the perimeter of the Property to prevent erosion and
unwanted run-off onto adjacent properties, streets, and alleys. Silt fences must conform to
standards set by the Minnesota Pollution Control Agency and the City.
6.8. All materials from undertaking the Work shall become the property and
responsibility of the Contractor.
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[PAGE 27]
6.9. Contractor may choose to salvage materials and equipment. Any salvaged items
must be removed from the Property in a timely manner as they are salvaged. On site
storage or sale of salvaged items is prohibited.
6.10. The use of explosives and on site burning by the Contractor are prohibited.
6.11. Contractor shall provide water, electricity, communications and toilet facilities on
site as necessary to complete the Work.
6.12. Contractor shall provide and maintain uninterrupted vehicular access to the
Property, including temporary demolition facilities, storage and work areas, for not only
persons and equipment involved in the project but also emergency vehicles.
6.13. Contractor shall keep fire hydrants and water control valves free from obstruction
and accessible for use.
6.14. Contractor shall take all necessary safeguards to prevent damage or injury to
neighboring property.
6.15. Prior to closing or rerouting existing traffic lanes or sidewalks in any public street
easement or right-of-way adjacent to streets, the Contractor shall obtain written
permission from the City Engineer. Expenses related to lane closures, including but not
limited to traffic barriers, signs and similar equipment as well as traffic control personnel,
shall be the responsibility of the Contractor.
6.16. The Contractor may conduct Work on the Property from 7 a.m. to 7 p.m. Monday
through Friday and 9 a.m. to 5 p.m. on Saturdays. No Work shall be conducted on
Sundays or legal holidays.
6.17. The Contractor shall not crush any materials on-site.
6.18. Contractor shall maintain the Property in a safe and neat manner. Adjacent
properties, streets and right-of-ways shall be kept free of dirt and debris.
6.19. If Contractor is negligent in carrying out any of the conditions in this Section 6,
the HRA reserves the right to perform this Work with its own workforce at overtime
rates. The costs of such Work will be charged to the Contractor.
Section 7. [Left Blank]
Section 8. [Left Blank]
Section 9. Demolition
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[PAGE 28]
9.1. Contractor shall use water sprinkling, temporary enclosures and other suitable
methods to limit dust and dirt rising and scattering in air. Contractor shall comply with
any and all governing regulations pertaining to environmental protection. Contractor
shall not use water when it may create hazardous or objectionable conditions such as
flooding or pollution.
9.2. Contractor shall clean adjacent structures and improvements of dust, dirt and
debris caused by demolition operations and return adjacent areas to condition existing
prior to start of Work.
9.3. Contractor shall demolish buildings, other structures, improvements, and
landscaping completely and remove all debris from the Property. Contractor may use
such methods as required to complete the Work subject to the limitations of governing
regulations.
9.4. Contractor shall proceed with demolition in a systematic manner, from top of
structures to ground, and will complete demolition work above each floor or tier before
disturbing supports on lower levels.
9.5 After the Building has been removed from the Property, Contractor shall remove
all foundation walls and the basement floor slab, and shall remove all other at grade
masonry, concrete slabs, sidewalks, steps, and driveways from the Property. ALL
ASPHALT, MASONRY, AND NON-MASONRY MATERIAL MUST BE
TRANSPORTED AWAY FROM THE SITE.
9.6 Immediately upon the removal of the Building from its foundation, Contractor
shall furnish and erect on the Property a wood slat snow fence or an approved substitute,
either one being in good repair and reasonably acceptable to HRA. The fence shall be at
least four feet in height, shall completely enclose the open basement, and shall remain in
place until the basement is filled, at which time it shall be removed;
9.7. Contractor shall locate demolition equipment throughout the building and remove
materials so as to not impose excessive loads to supporting walls, floor or framing.
9.8. Contractor shall provide and maintain interior and exterior shoring, bracing or
other structural support to preserve structural stability and prevent movement, settlement
or collapse of the building.
9.9. Contractor shall break up any concrete slabs-on-grade and remove from the
Property.
9.10. Contractor shall demolish footings, foundation walls, tunnels and other below-
grade structures and remove from the Property.
9.11. After removing all foundation walls and the basement floor slab, as provided
above, Contractor shall fill the basement to ground surface level with clean compactable
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soil. The basement hole MUST BE inspected by the City Inspector prior to filling, and
any unauthorized debris removed. The fill must not contain any hazardous substance or
disposed building material.
9.12. All sheds and other accessory structures, clothesline and other poles, and landscape
structures shall be removed from the Property.
9.13. Contractor may not cut or remove a tree from the Property without prior permission
from HRA. If any trees are cut or destroyed by Contractor without prior approval, Contract
will pay to HRA damages of $200 per tree. Any such damages shall be deducted from
Contractor’s payment. Any trees approved by the HRA for removal and cut or felled in the
moving process shall be removed immediately, and the tree stumps may remain.
9.14 Contractor shall provide certificate of well abandonment if required.
Section 10. Debris Control
10.1. Contractor shall maintain the Property free of extraneous debris.
10.2. Contractor shall prohibit overloading of trucks to prevent spillage on access and
haul routes.
10.3. Contractor shall maintain a sweeping and clean-up program to prevent deposition,
release and disbursal of soils and debris onto paved surfaces.
Section 11. Disposal
11.1. Contractor shall move from the Property all debris, rubbish and other materials
resulting from demolition operations.
11.2. Contractor shall transport materials from the Property and legally dispose of them
off-site in accordance with governing regulations.
Section 12. Earthwork
12.1. Contractor shall rough grade the Property using clean fill after completing all
abatement and demolition activities; taper edges of all excavated areas to
minimize slope of 2 to 1, keeping soil disturbance to a minimum. Property must
be seeded, and erosion control measures must remain in place until turf is
established. The Contractor must comply with all requirements of the Minnehaha
Creek Watershed District related to the Work. Final payment will not be made
until turf is established.
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[PAGE 30]
Section 13. Excusable Delays
13.1. The following circumstances, and only these circumstances, will, at the HRA's
discretion, be considered legitimate cause for a change in the commencement and/or
completion dates specified in Section 4 of this Agreement:
a. Material delay -- material delays that are beyond the control of the
Contractor, which can be shown to have directly caused the overall late
completion.
b. Adverse weather and emergency conditions -- weather or emergency
conditions that directly affect the scheduling of exterior work over a
significant portion of the term of this Agreement.
c. Strikes -- Contractors who face union work stoppage in the case where
they have to rely on such a work force in order to complete the Work.
d. Amendments -- amendments in the original scope of Work, which can be
reasonably shown to require an extension of the time allowed for
completion.
e. Other delays – act or neglect of the HRA, or of an employee of either, or
of a separate contractor employed by the HRA, or by changes ordered in
the Work or by unavoidable casualties or other causes beyond the
Contractor’s control.
Section 14. Change Order
14.1. The HRA has the right, within the general scope of the Work and without notice
to any surety or sureties of the Contractor, if any, to make changes in the Work, either by
altering the nature of the same or by adding to or deducting from it.
14.2. This is a lump sum contract. The Contractor must immediately contact the HRA
prior to exceeding the Contract Price set out in Section 3.1. In the event an unknown
condition is encountered during the Contractor’s performance of the Work, the
Contractor must notify the HRA’s project manager immediately. The appropriate course
of action will be determined and, if necessary, a change order will be authorized prior to
the start of the Work. Change orders for additional payment will not be granted due to
the Contractor underestimating quantities of material(s), winter weather conditions or the
amount of labor required in order to perform the Work. For change orders related to
Hazardous or Regulated Materials, the HRA reserves the right to subcontract the Work to
another contractor.
14.3. All changes shall, except in the case of emergencies endangering the safety of
persons or property, be made by written change order. The parties shall determine the
effect of any change order on the Contract Price and project schedule by mutual
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agreement. The Contractor must promptly comply with any and all written change
orders. No such change order shall be deemed to invalidate the remaining terms and
conditions contained in this Contract.
Section 15. Waiver of Liability
15.1 It is agreed that the Work is undertaken at the sole risk of the Contractor. The
Contractor does expressly forever release the HRA and the City from any claims,
demands, injuries, damage actions, or causes of action whatsoever, arising out of or
connected with the Work.
Section 16. Indemnification
16.1. Any and all claims that arise or may arise as a consequence of any act or omission
on the part of the Contractor, its agents, servants, or employees while engaged in the
performance of the Work shall in no way be the obligation or responsibility of the HRA
or the City. To the fullest extent permitted by law, the Contractor agrees to defend,
indemnify and hold harmless the City and the HRA, and their employees, officials,
volunteers and agents from and against all claims, actions, damages, losses and expenses,
including attorney fees, arising out of the Contractor’s negligence or the Contractor’s
performance or failure to perform its obligations under this Agreement. The Contractor’s
indemnification obligation shall apply to the Contractor’s subcontractor(s), or anyone
directly or indirectly employed or hired by the Contractor, or anyone for whose acts the
Contractor may be liable. The Contractor agrees this indemnity obligation shall survive
the completion or termination of this Agreement.
Section 17. Insurance
17.1. The Contractor agrees that in order to protect itself, the HRA, and the City under
the indemnity provisions set forth in Section 16 of this Agreement, it will at all times
during the term of this Agreement, maintain, at a minimum, the following insurance
policies:
a. Workers Compensation Insurance. The Contractor shall maintain worker's
compensation insurance in compliance with all applicable statutes
including Chapter 176 of the Minnesota Statutes. Such policy shall
include Employer's Liability Coverage and at least such amount(s) as are
customarily provided in worker's compensation policies issued in
Minnesota. Contractor further agrees to require all subcontractors and
independent contractors to maintain worker's compensation insurance in
compliance with all applicable statutes and to monitor the compliance of
such subcontractors and independent contractors with the applicable
statutes.
b. Commercial General Liability Insurance. The Contractor shall maintain
Occurrence Based Commercial General Liability Insurance ("CGL"),
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providing coverage on an "occurrence", rather than on a "claims made"
basis, which policy shall include coverage for the Completed Operations
Hazard, and which shall also include a Broad Form General Liability
Endorsement, ISO number GL 0404, or an equivalent form (or forms), so
long as such an equivalent form (or forms) affords coverage which is in all
material respects at least as broad. Any equivalent form (or forms) of
coverage shall be approved by the HRA.
The Contractor agrees to maintain total liability policy limits of at least
One Million Dollars ($1,500,000), applying to liability for Bodily Injury,
Personal Injury, and Property Damage, which total limits may be satisfied
by the limits afforded under its Occurrence Based CGL policy as specified
above, or by such policy in combination with the limits afforded by an
Umbrella Liability Policy (or policies) provided, however, that the
coverage afforded under any such Umbrella Liability Policy shall be at
least as broad as that afforded by the underlying occurrence based CGL
Policy as specified above.
c. Automobile Liability Insurance. The Contractor shall maintain automobile
liability insurance covering liability for Bodily Injury and Property
Damage arising out of the ownership, use, maintenance, or operation of all
owned, non-owned, and hired automobiles and other motor vehicles. Such
policy shall provide total liability limits for combined Bodily Injury and/or
Property Damage in the amount of at least One Million Dollars
($1,500,000) per accident, which total limits may be satisfied by the limits
afforded under such policy, or by such policy in combination with the
limits afforded by an Umbrella Liability Policy (or policies) provided,
however, that the coverage afforded under any such Umbrella Liability
Policy shall be at least as broad as that afforded by the underlying
automobile liability insurance policy.
The HRA and the City shall be named as "additional insured" parties with respect to the
insurance policies specified in (b) and (c) above. The Contractor shall not commence
Work until a Certificate of Insurance evidencing all of the insurance policies required
above is approved and a written Notice to Proceed is issued by an authorized
representative of the HRA. The HRA shall, at any time during the term of this
agreement, have the right to require that the Contractor secure any additional insurance,
or additional feature to existing insurance, as the HRA may reasonably require for the
protection of its interests or those of the public. It is expressly understood that the HRA
does not in any way represent that the minimum insurance coverage set forth in this
paragraph is sufficient or adequate to protect the interest or liabilities of the Contractor.
Section 18. Bond
18.1. No payment or performance bonds for the Work shall be required pursuant to
Minn. Stat. § 574.26.
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Section 19. Lien Waiver
19.1. Neither the Contractor nor any subcontractor or other person or entity furnishing
labor, equipment, or materials in connection with the Work shall file any mechanic's lien
against the HRA's buildings, structures or land or any part thereof, provided that the HRA
makes all payments due to Contractor under this Contract. The Contractor shall protect,
defend, indemnify, and hold harmless the HRA and the City from any and all claims,
demands, or actions of whatever nature arising out of work, labor, equipment, or
materials furnished by the Contractor or its subcontractors in connection with the Work,
provided that the HRA makes all payments due to Contractor under this Contract.
Payment of the Contract Price shall not be due until the Contractor has delivered to the
HRA lien waivers acceptable to the HRA, which release the HRA from all liens that may
arise in connection with the Work. The Contractor shall list on the attached Exhibit A the
names of all suppliers and/or subcontractors that will provide materials, services, or labor
in connection with the Work. The Contractor will notify the HRA of any changes in this
list prior to the commencement of the Work.
Section 20. Subcontractors
20.1. Contractor agrees to bind every subcontractor by the terms, conditions, and
provisions set forth in the Contract that are applicable to the subcontractor's work,
unless otherwise specifically agreed otherwise in writing by the HRA.
20.2. Contractor agrees to pay every subcontractor within 10 days of receipt of payment
from the HRA pursuant to Minn. Stat. § 471.425.
Section 21. Assignment
21.1. This Contract shall be binding upon the Contractor, its legal representatives, heirs,
successors, and assigns. No assignment or attempted assignment of this Contract or any
rights hereunder shall be effective unless the written consent of the HRA is first obtained.
No such assignment, even if consented to by the HRA, shall relieve the Contractor from
liability under this Contract for the performance and completion of the Work in
accordance with the Contract. Notwithstanding the foregoing, Contractor shall be
entitled to use subcontractors to perform the Work.
Section 22. Entire Agreement
22.1. The Contract contains all the terms, conditions, and provisions pertaining to the
Work to be completed by the Contractor, there being no other understandings,
agreements, or warranties, express or implied. All prior negotiations and dealings
regarding the subject matter of the Agreement are superseded by and merged into the
Contract.
Section 23. Default
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23.1. The occurrence of any of the following shall constitute default by the Contractor
and, if not corrected within 15 days of the HRA providing the Contractor with notice of
the default, shall allow the HRA to terminate this Agreement: (1) failure to perform the
Work as stated in this Contract; (2) failure to perform or complete the Work by the
completion date as set forth in this Contract or as otherwise agreed to by the parties;
(3) filing bankruptcy; (4) making a material misrepresentation; (5) disregarding laws,
ordinances, rules, regulations or orders of any public authority having jurisdiction;
(6) failure to make satisfactory progress toward completion of the Work; or (7) failure to
perform any other material provision of this Agreement. The HRA may lawfully
terminate this Contract if, after providing the Contractor with 15 days notice of the
default, the Contractor does not correct the default. Upon default of this Agreement by
the Contractor, the HRA may withhold any payment due the Contractor for purposes of
set-off until such time as the exact amount of damages due is determined. Furthermore,
the HRA may use any unpaid or retained amounts to correct any defective work or
materials and to complete the Work as needed. Such withholding shall not constitute
default or failure to perform on the part of the HRA.
Section 24. Governing Law
24.1. This Contract shall be construed in accordance with and governed by the laws of
the state of Minnesota.
Section 25. Amendment
25.1. This Contract may be modified or amended only with the written approval of the
HRA and the Contractor.
Section 26. Construction
26.1. In the event that any one or more of the provisions of this Contract, or any
application thereof, shall be found to be invalid, illegal, or otherwise unenforceable, the
validity, legality, and enforceability of the remaining provisions or any application
thereof shall not in any way be affected or impaired thereby.
Section 27. Authority
27.1. Each of the undersigned parties warrants that it has the full authority to execute
this Contract, and each individual signing this Contract on behalf of a corporation hereby
warrants that he or she has full authority to sign on behalf of the corporation and that he
or she represents and binds such corporation thereby.
Section 28. Waiver
28.1. No failure by the HRA to insist upon the strict performance of any covenant, duty,
agreement, or condition contained in this Agreement or to exercise any right or remedy
consequent upon a breach thereof shall constitute a waiver of any such breach or any
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[PAGE 35]
other covenant, agreement, term, or condition, nor does it imply that such covenant,
agreement, term, or condition may be waived again.
Section 29. Nondiscrimination
29.1 In the hiring of employees to perform Work under this Contract, the Contractor
shall not discriminate against any person by reason of any characteristic protected
by state or federal law.
Section 30. Notices
30.1 All notices and other communications under this Agreement must be in writing
and must be given by registered or certified mail, postage prepaid, or delivered by hand at
the addresses set forth below:
Notice to HRA: Attn: Housing Specialist
6700 Portland Avenue
Richfield, MN 55423
Notice to Contractor: Harkess Excavating
113 Varner Way
Buffalo, MN 55313
612-978-4120
Section 31. Savings Clause
31.1 If any court finds any portion of this Agreement to be contrary to law, invalid, or
unenforceable, the remainder of the Contract will remain in full force and effect.
Section 32. Payments to Contractor and Completion
32.1. The Contractor shall be paid upon completion of the Work in accordance with the
payment schedule of the HRA, if any, and this section.
32.2. Prior to receiving payment for Substantial Completion of the Work, the
Contractor shall in writing state that the respective portion of the Work has been
substantially completed and is free and clear of all liens as provided in this
Contract. Upon Substantial Completion and inspection and verification by the
HRA, the payment for that portion of the Work shall be made. Final payment
shall be made when Contractor certifies that Final Completion has been achieved
and verified by the HRA.
IN WITNESS WHEREOF, the parties have caused this Contract to be duly executed in
their names and behalves and on or as of the date and year first above written.
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[PAGE 36]
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
Erin Vrieze Daniels,
Its Chair
By
Melissa Poehlman
Its Executive Director
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[PAGE 37]
Harkess Excavating
By
Its
By
Its
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered (JAE)
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300
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[PAGE 38]
EXHIBIT A
LIST OF SUPPLIERS AND SUBCONTRACTORS
314396v2 MTN RC125-1
A-1
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